The FCA-regulated ParFX experienced a 14% drop in revenue in 2023 due to a decrease in client numbers, with net profit shrinking by 84% to $934,000. However, the wholesale electronic trading platform for spot Forex products, a subsidiary of the Tradition UK Group, plans to expand its global distribution network and broaden its “FX electronic trading community.”

ParFX's Revenue Decline and Profit Squeeze in 2023

According to ParFX's 2023 report, revenue fell to $4.8 million, a 14% decrease from $5.6 million reported the previous year. An increase in administrative costs to $3.5 million caused operating profit to shrink to $1.2 million from $2.1 million, while net profit dropped below $1 million.

This represented a decline of over 80% from the $1.7 million reported in 2022.

“The Directors are satisfied that the Company has adequate resources to continue to operate as a going concern for the period covering up to at least 12 months from the date the financial statements are authorized for issuance, and the financial statements have been prepared on this basis,” the report stated.

A breakdown of revenue by product group shows that electronic brokerage services accounted for the vast majority ($3.3 million), while API connection fees generated $1.3 million.

ParFX is a wholesale electronic spot FX trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term that aims to bring transparency to the global foreign exchange market. Launched in 2013 by Tradition, one of the world's largest interdealer brokers, ParFX operates under the leadership of CEO Dan Marcus and COO Roger Rutherford. The company, regulated by the UK's FCA, offers services to both banks and non-bank institutions, including hedge funds, asset managers, pension funds, and corporations.

How Did Other UK Firms’ Reports Fare?

In July, several other UK-registered financial firms also presented their 2023 financial reports. Among them was Equiti Capital UK, whose income declined by 30% despite an increase in revenue.

The company's trading revenue for 2023 surpassed $31 million, showing a modest increase from the $30.5 million reported in the previous year. However, an examination of the profit and loss statement reveals that higher operating expenses led to a decrease in profit before tax from $1.8 million to $1.5 million. This ultimately resulted in a net profit of $1.1 million, representing a decline of over 30% compared to the $1.6 million reported in 2022.

Meanwhile, Sucden Financial reported a 30% increase in profit. The London-based firm announced a profit before taxation of £23.9 million for the year ending December 31, 2023, up from £18.4 million in 2022. The company's total net assets grew to £168.5 million from £160.7 million in the previous year.

July also saw the release of fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term giant Revolut's report, which showed a 95% increase in revenue and a record profit of £344 million. This marked a significant turnaround from the £25.4 million loss reported in the previous year.